Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 18 - No. 28)
Which of the following are characteristics of preference shares?
They receive dividends before ordinary shareholders.
They have voting rights.
They may have a fixed dividend rate.
They are repaid first in the event of a liquidation.
Explanation
Preference shares often have a fixed dividend and priority over ordinary shares for dividend payments and in liquidation.
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